Orange will acquire the outstanding 50% stake in MasOrange from Lorca, a private equity group that includes KKR, Cinven and Providence Equity Partners
Under a simplified review, the European Commission has approved Orange’s proposal to buy out its partner in MasOrange which operates in Spain, saying it has no concerns about competition. The deal is expected to close before July this, subject to finalising terms.
Orange will acquire the outstanding 50% stake in MasOrange, consolidating its position in Spain and says it will accelerate its plans for growth in what is already its second largest market in Europe after France.
MasOrange was formed in 2024 through the merger of Orange and MásMóvil. It became the second largest operator in Spain after the merger, offering fixed and mobile communications.
The possibility of Orange acquiring control of the merged entity was allowed for from the start and it had up to 42 months after the merger was completed to do so.
Orange announced its intention to make good on that condition last November. It announced it had reached a non-binding agreement with Lorca to acquire full ownership of MasOrange by acquiring the remaining 50% stake in its Spanish joint venture for €4.25 billion in cash.
Lorca is a private equity group that includes KKR, Cinven and Providence Equity Partners. The signing of a binding agreement is expected before the end of 2025 and will be conditional upon the agreement on the final terms and conditions.
The Commission’s decision is widely seen as supporting consolidation in European markets, giving operators greater scale to boost network investment and competitiveness. Not that regulators at European Union level have let go of their creed concerning competition and consumer choice.
